What are some of the tax incentives available to owners or lessees of real estate?
Weissenberg: Among the federal programs is the Rehabilitation Tax Credit , which provides a federal tax credit of up to 20% of the cost of rehabilitating a certified historic structure and a credit of 10% of the cost of rehabilitating other qualified property that was placed in service prior to 1936. This credit can be passed through to a lessee of the property. Another interesting federal program is the New Markets Tax Credit , available for certain investments in low-income community businesses. This credit, which is available over a seven-year period, can amount to a total credit of 39% of the amount of the investment. Editor: Are there specific programs available for taxpayers at the state or local level? Weissenberg: States have the ability to assist business with the issuance of special purpose bonds. These bonds are treated as issued by the state so that the interest on the bonds is exempt from both federal and state taxation (but is a preference for the federal Alternative Mini
